IRS Grants Relief for Victims of Texas Storms in 2024

On May 28, 2024 the IRS announced tax relief for individuals and businesses in Texas that were affected by severe storms, straight-line winds, tornadoes and flooding that began on April 26, 2024. These taxpayers now have until Nov.1, 2024, to file various federal individual and business
tax returns and make tax payments.

Following the disaster declaration issued by the Federal Emergency Management Agency
(FEMA), individuals and households that reside or have a business in: Calhoun, Collin, Cooke,
Denton, Eastland, Guadalupe, Hardin, Harris, Jasper, Jones, Lamar, Liberty, Montague,
Montgomery, Polk, San Jacinto, Trinity, Walker and Waller counties qualify for tax relief.

The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for
taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling
on or after April 26, 2024, and before Nov. 1, 2024, are granted additional time to file through
Nov. 1, 2024. As a result, affected individuals and businesses will have until Nov. 1, 2024, to file
returns and pay certain taxes that were originally due during this period. The relief generally does
not apply to payroll tax deposits.

The Nov. 1, 2024, deadline also applies to any payment normally due during this period, including
the quarterly estimated tax payments due on June 17, 2024 and Sept. 16, 2024, and the quarterly
payroll tax returns normally due on April 30, 2024, July 31, 2024 and Oct. 31, 2024. Penalties on
payroll tax deposits due only between April 26, 2024 and May 13, 2024 will be abated as long as
the tax deposits were made by May 13, 2024.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has
an original filing, payment or deposit due date that falls within the postponement period, the
taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

The IRS states that they will automatically identify taxpayers located in the covered disaster area
and apply filing and payment relief. But affected taxpayers who reside or have a business located
outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request
this tax relief.

In addition, since FEMA declared these counties a federal disaster area, casualty losses are
deductible on business and individual returns for 2024 and 2023 if the election is made to claim
the loss in the prior year.

Read more: https://www.irs.gov/newsroom/irs-announces-tax-relief-for-taxpayers-impacted-by-
severe-storms-straight-line-winds-tornadoes-and-flooding-in-texas